CMS announces steeper cuts for Round 1 re-compete

BALTIMORE - The reimbursement rates for certain home medical equipment will be, on average, 37% lower as part of the Round 1 re-compete of competitive bidding, CMS announced today.

The Round 1 re-compete is scheduled to kick off in nine cities on Jan. 1, 2014.

The reimbursement rates for Round 1 of competitive bidding, which kicked off Jan. 1, 2011, were, on average, 32%, below the current fee schedule.

In the Round 1 re-compete, providers submitted bids for a revamped list of product categories:

• Respiratory equipment (oxygen and CPAP)

• Standard mobility equipment (walkers, manual and power wheelchairs)

• General HME (beds, support surfaces, TENS devices, commode chairs, patient lifts and seat lifts)

• Enteral nutrients

• Negative pressure wound therapy

• External infusion pumps and supplies

The reimbursement rates for the Round 1 re-compete will be, on average, 41% lower for enteral nutrients; 21% lower for external infusion pumps; 47% lower for general HME; 42% lower for negative pressure wound therapy pumps; 40% lower for respiratory equipment; and 34% lower for standard mobility equipment.

CMS's next steps:

• It will now begin the contracting process.

• In the fall of 2013, it plans to announce the contract suppliers, and begin its supplier, referral agent and beneficiary education campaign.

• On Jan. 1, 2014, it plans to go live with the payment amounts and contract suppliers.

For reimbursement rates:

http://dmecompetitivebid.com/palmetto/cbicrd1recompete.nsf/DocsCat/Single%20Payment%20Amounts?open&cat=events

For average reimbursement rates:

http://www.dmecompetitivebid.com/Palmetto/Cbicrd1Recompete.Nsf/files/R1RC_Average_Savings.pdf/$File/R1RC_Average_Savings.pdf

For number of contract offers by bid area and product category:

http://www.dmecompetitivebid.com/Palmetto/Cbicrd1Recompete.Nsf/files/R1RC%20Contract_Offers.pdf/$File/R1RC%20Contract_Offers.pdf